Do’s and Don’ts
There are so many things in the world of trading which you know before entering into the market, however, it’s not possible to mention all but a few important do’s and don’ts I am discussing here with you which will help you to improve your trading experience in markets.
Trading in the stock market is a risky business you can lose part of your money or all in it, here are some tips on do’s and don’ts in the stock market.
Don’t trade or invest with the money which you can’t afford to lose.
Don’t trade or invest with borrowed money, it could be the reason for financial suicide.
Don’t overtrade to get rich soon as the stock market is not getting rich soon scheme.
Don’t jump in the market on rumors or news, lots of people do that and get butchered.
Don’t trade on SMS or call received from unknown sources.
Don’t involve in Dabba trading.
Don’t invest all your money in a single stock.
Don’t involve emotionally with trading.
Don’t lead yourself with fear or greed while trading.
Trading in the stock market is purely involving in business; don’t treat it as a gambling or blind game.
Never forget rules, if you forget rules market will forget you.
Do follow proper money management.
Always trade with the broker or advisor whom you trust or who has a good track record.
Divide your capital into at least ten equal parts and invest one part in one stock and wait for another opportunity to invest.
Allocate your money sector-wise, don’t put all your money in one sector (e.g. few people invest in banking stocks only; few invest in IT stocks only which is not a proper way to invest.)
Always plan before you start investing or trading in the stock market, and stick with your plan.
PLEASE BE NOTED THAT DON’T CHANGE YOUR PLAN IN BETWEEN.
Be very much disciplined while trading and investing, it is essential to minimize losses and increase profit potential.
Follow the rules of the market and money will follow you.